Apollo to purchase 10 percent stake in Abu Dhabi asset manager

Global investment firms have increasingly sought direct stakes in Middle Eastern asset management platforms. Apollo Global Management is finalizing a deal to acquire nearly a 10 percent ownership interest in Mubadala Capital. The target is the alternative asset management subsidiary of Mubadala Investment Co., the sovereign wealth fund of Abu Dhabi.

People familiar with the matter said the agreement is expected to be announced later Monday morning. They spoke on condition of anonymity because the details had not yet been made public. Financial terms for the specific stake purchase were not immediately available.

This move follows a multibillion-dollar partnership between the two entities that began in 2022. That initial agreement was extended two years ago to strengthen Apollo's Capital Solutions platform. The expanded terms allow the firms to jointly source and provide customized debt and equity financing to companies worldwide. In 2023, the institutions formed a separate $2.5 billion joint venture. That vehicle is designed to co-invest in global private credit opportunities over a five-year period.

Mubadala Capital advises and administers more than $755 billion in assets. The firm is the region's only large-scale asset manager of its kind. Under the leadership of CEO Hani Barhoush, its core alternatives business has grown to exceed $60 billion. The new investment aligns with the company's strategy to expand its presence on the global investing stage.

Sources indicated that the close working relationship between John Zito, co-president of Apollo's Asset Management arm, and Barhoush helped drive the talks. The two have collaborated on previous initiatives for several years. A person familiar with the deal noted that scale in the asset management sector is becoming a critical competitive factor. "Capital as a moat is a big thing," that person said.

Apollo has made similar investments in other asset management platforms, including Diameter Capital, Thoreau, and Motive Partners. The firm has spent the past 15 years building strategic relationships in Abu Dhabi. Mubadala Capital maintains international offices in London, New York, Rio de Janeiro, and San Francisco. Spokespersons for both firms declined to comment on the transaction.